The Robinhood web site residence display screen on a smartphone.
Gabby Jones | Bloomberg | Getty Pictures
Restrictions on Robinhood merchants obtained tighter all through the day on Friday, solely permitting shoppers to purchase a single share of GameStop.
The inventory buying and selling app additionally expanded its record of restricted shares from 13 earlier within the day to 50.
“The desk under exhibits the utmost variety of shares and choices contracts to which you’ll be able to improve your positions,” Robinhood wrote. CNBC recreated the desk.
The restricted record tells shoppers what number of shares and choices contracts they’ll purchase pertaining to a specific safety. Robinhood clients can solely purchase one share and as much as 5 choices contracts of GameStop; nonetheless, if a buyer already owns a number of share of GameStop, they aren’t capable of purchase any extra shares.
Robinhood’s restrictions might take the wind out of point-and-click merchants making an attempt to jack up the worth of GameStop. Robinhood, nonetheless, won’t promote any consumer’s shares of GameStop which are already over the one-share restrict from a earlier place.
The inventory, which closed up 67%, was off its highs of the session as the brand new extra extreme limits have been applied. Earlier within the day, shoppers might purchase 5 shares of GameStop.
Essentially the most shares shoppers might purchase of any of the 50 shares was 5. Purchasers with out current shares can solely purchase one share and 10 choices contracts in AMC Leisure, which is down from an earlier 115 shares. Shares of AMC Leisure closed up 53% but in addition effectively off their highs of the day. Purchasers can solely purchase one share of American Airways, Mattress Tub & Past and Koss.
The inventory buying and selling app has additionally expanded its record of restricted shares. A few of the new names embrace Superior Micro Units, Starbucks, Novavax, Common Motors and Past Meat.
On Thursday, Robinhood instructed shoppers it was solely allowed to promote shares, not purchase new ones, in sure securities that have been garnering social media consideration from Reddit crowds. The agency additionally raised margin necessities, or the amount of cash in a consumer’s account when they are going to be utilizing leverage to purchase a safety. Robinhood’s choice was met with outrage, with many customers taking their grievance to Twitter.
Robinhood mentioned the buying and selling restrictions have been threat administration selections to guard Robinhood and its clearinghouses, however touted that the restrictions could be eased on Friday.
The free buying and selling pioneer raised $1 billion in investor cash and tapped extra credit score strains in a single day for its shoppers to have the ability to commerce names like GameStop and AMC Leisure on Friday.
Nonetheless, the restrictions obtained tighter all through the buying and selling day, because the record of restricted securities grew and the variety of shares shoppers might purchase shrunk for sure shares.
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